Research Proposal: BISB Loans and Community Development in Bahrain

This research proposal outlines a study on the contribution of loan programs by the Bahrain Islamic Bank (BISB) to community development within the Kingdom of Bahrain. The study aims to determine the current status and effectiveness of BISB loan programs, identify encountered problems, and propose recommendations for improvement. The research will utilize questionnaires, validation of instruments, and observation methods to collect data. Expected outcomes include positive impacts on various community segments, including students and widows, leading to increased independence and improved living conditions. The research holds significant value for the government, the Bahraini society, and the banking sector, offering insights for economic and social indicators, loan program enhancements, and future research avenues. The study seeks to address specific questions regarding the impact of BISB loans, employing descriptive statistics, reliability, and validity checks, with data management handled via Microsoft Excel.

Research Proposal:
1-Locale of the study:
Kingdom of Bahrain
2- Proposed Title:
The Study of contribution of the loan by Bahrain Islamic Bank in Community development.
3- Background and Rationale of the study:
There are many banks in the kingdom of Bahrain that are either national or
international banks. These banks have their profitability objectives in
addition to their social roles in the Bahraini society. One of the most famous
banks is the Bahrain Islamic Bank (BISB) which was founded in 1979 as the
first Islamic commercial bank in the Kingdom of Bahrain. BISB is well known
for its continual growth and ability to achieving the determined objectives. In
the kingdom of Bahrain, BISB has 13 branches around the country
introducing the various services and products that include: e-banking,
accounts, financing projects, financing houses, credit cards, etc
Family Bank of Bahrain (2010) carried out a study about loan programs that
the bank undertakes. These loan programs Sharia’a compliant. The loan
programs undertaken by the Family Bank in the kingdom of Bahrain
resemble those programs applied in Gramin bank in Indonesia. The programs
basically aim at improving the community in which the bank does exist. The
loan program has been designed to provide aid to the small businesses in
addition to provide aid to the local community societies. The study concluded
that the loan programs of the Family Bank of Bahrain are beneficial for the
borrowers as these programs go beyond donating loans to marketing the
products of the small businesses.
4- Objective of the study:
This study will equip both customer and the management in lieu of BSIB
bank with the following knowledge as follows:
a- The respondents must know about the importance of bank loans in
community development.
b- How respondents can be actively involved in both providing and
receiving loans.
c- What criteria can be adapted to make the whole process efficient and
people friendly.
5- Statement of the Problem:
This study aims to determining the contributions of the BISB loan programs to community

development. In particular, this study seeks to answer the following questions:
1. What is the current status of the loan programs of the BISB in the Kingdom of Bahrain in
term of: community development?
2. How effective are the loan programs of the BISB to community development in Kingdom
of Bahrain in terms of: community development?
3. What problems encountered in the implementation of the loan program by the BISB in
terms of: community development.
4. What proposed recommendation can be suggested to facilitate the loan program for the
community development?
6- Expected results:
It is expected that the research will have the following outcomes:
a- The BSIB introduced loan programs have positive effects on
community of all classes
b- The BSIB loan program will help students as well as widows.
c- The BSIB will make the people independent and improve their living
conditions.
7- Research Methodology:
The three research methods have been used in carrying out the whole
research. Firstly, the questionnaire was designed which consist of three
parts. The first part of it investigate the current status of the BSIB loan, the
second part will investigate the effectiveness and the third part will the
problems faced by both management and customers. Secondly, the
validation of instrument methodology was adapted and a pre-test was
performed by making a questionnaire and giving to the five respondents of
the total number of respondents. Thirdly, observation was made and
researchers decided to spend a period of whole one week in the BSIB bank to
learn the whole process of loan and how it is dealt. Further, descriptive
statistics, reliability, validity and Microsoft excel will be the data
management tool.
8- Educational, social, or scientific value of the research:
The research will prove beneficial for government that it would represent
good economic and social indicator about the roles undertaken by the
Islamic banks in the Kingdom of Bahrain. The research is going to be
significant for the entire Bahraini society since the main reason of the study
is to focus on the contributions that are made by the BISB loans to the
Bahraini community in general. The study is significant for the bankers as it
provides them with the best measures of how to improve the loan programs.
Finally, it will open the new research avenues for the other students to carry

out the research in the same domain and also help out the policy makers to
make clear and faster decisions about the loan program.